Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn


Alcoa JV drives Alumina's profit growth

Christian Edwards  |  24 Aug 2017Text size  Decrease  Increase  |  
Email to Friend

Page 1 of 1

SYDNEY - [AAP] Miner and metals producer Alumina (ASX: AWC) has lifted its first-half profit to $US136.6 million ($A172.7 million), thanks to higher prices realised by its joint venture with metals giant Alcoa.

Alcoa World Alumina and Chemicals (AWAC) made a $US369.7 million net profit in the six months to June, up from $US72.2 million in the prior corresponding period.

Alumina's 40 per cent stake in the venture yielded the ASX-listed firm a profit of $US147.1 million ($A186.2 million).

Shares in the investor in global bauxite mining and alumina refining were up 10.5 cents, or 5.2 per cent, at $A2.135 at 1530 AEST.

Since June 30 this year, the company has received $US83.6 million in distributions from AWAC, which the company said it has directed into its fully franked interim dividend of 4.2 US cents per share.

"Higher net cash distributions from AWAC have enabled the company to increase its dividend to shareholders," Alumina chief executive Mike Ferraro said on Thursday.

The company suspended its dividend reinvestment plan and increased its interim dividend from 2.9 US cents a year ago.

Email to Friend
Market News and Views Sign up today and receive our free Morning Note e-newsletter, daily in your inbox.

Higher alumina prices helped lift AWAC's earnings before interest, tax, depreciation, and amortisation to $US682.4 million.

Alumina said it now expects global aluminium demand--which has grown over 5 per cent so far this year--to continue, driven largely by China.

"Global aluminium consumption is growing and underpins demand for alumina and bauxite," Mr Ferraro said.

The company's full-year production forecast remains at 12.6 million tonnes, although the average cost of production will increase by $US9 to $US202 a tonne.

Bauxite demand and prices are likely to remain well supplied and steady, although exposure to possible Chinese environmental reforms--like winter pollution restrictions--could create near-term price fluctuations, Mr Ferraro said.


* Half year net profit $US136.6m v $US7.8m

* Interim dividend up 1.3 US cents to 4.2 US cents


AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

Email To Friend